§ 1808.616. Events of default and remedies with respect to Bonds.
228 words·~1 min read·
/us/cfr/t12/s§ 1808.616·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Events of default. An event of default with respect to any Bond shall include, but not be limited to:
(1)Nonpayment of interest or the Agency Administrative Fee when due and payable;
(2)Nonpayment of principal or prepayment price when due and payable;
(3)The use of Bond Proceeds for any purpose other than an Eligible Purpose; and
(4)Any other events of default set forth in the Bond or the Bond Trust Indenture.
(b)Default of other Bonds. An event of default under one Bond shall not constitute an event of default under another Bond.
(c)Remedies. Pursuant to the Agreement to Guarantee and the Bond Trust Indenture, remedies upon an event of default shall include, but not be limited to, the following:
(1)Declaring the entire amount of unpaid principal and interest on the applicable Bond immediately due and payable; and
(2)Exercising all remedies available under the applicable Agreement to Guarantee and the Bond Trust Indenture.
(d)Notice and comment. Prior to imposing any remedies pursuant to this section or the Agreement to Guarantee, the Guarantor shall, to the maximum extent practicable, provide the Qualified Issuer with written notice of the proposed sanction and an opportunity to comment. Nothing in this section, however, shall provide a Qualified Issuer the right to any formal or informal hearing or comparable proceeding not otherwise required by law.